LUCIA TAN, plaintiff-appellee, vs. ARADOR VALDEHUEZA and REDICULO VALDEHUEZA, defendants-appellants. Alaric . Ac!sta f!r plaintiff-appellee. L!ren"!

. de #$"%an f!r defendants-appellants.

CA&TRO, '.( T)is appeal *as certified t! t)is C!$rt +, t)e C!$rt !f Appeals as inv!lvin- .$esti!ns p$rel, !f la*. T)e decisi!n a .$! *as rendered +, t)e C!$rt !f /irst Instance !f 0isa%is Occidental 12ranc) I3 in an acti!n instit$ted +, t)e plaintiff-appellee L$cia Tan a-ainst t)e defendants-appellants Arad!r Valde)$e"a and Redic$l! Valde)$e"a 1d!c4eted as civil case 56783 f!r 1a3 declarati!n !f !*ners)ip and rec!ver, !f p!ssessi!n !f t)e parcel !f land descri+ed in t)e first ca$se !f acti!n !f t)e c!%plaint, and 1+3 c!ns!lidati!n !f !*ners)ip !f t*! p!rti!ns !f an!t)er parcel !f 1$nre-istered3 land descri+ed in t)e sec!nd ca$se !f acti!n !f t)e c!%plaint, p$rp!rtedl, s!ld t! t)e plaintiff in t*! separate deeds !f pact! de retr!. After t)e iss$es *ere 9!ined, t)e parties s$+%itted t)e f!ll!*in- stip$lati!n !f facts( :. T)at parties ad%it t)e le-al capacit, !f plaintiff t! s$e; t)at defendants )erein, Arad!r, Redic$l!, acita, C!ncepci!n and R!sari!, all s$rna%ed Valde)$e"a, are +r!t)ers and sisters; t)at t)e ans*er filed +, Arad!r and Redic$l! stand as t)e ans*er !f acita, C!ncepci!n and R!sari!. 5. T)at t)e parties ad%it t)e identit, !f t)e land in t)e first ca$se !f acti!n.

<. T)at t)e parcel !f land descri+ed in t)e first ca$se !f acti!n *as t)e s$+9ect %atter !f t)e p$+lic a$cti!n sale )eld !n 0a, =, :>66 at t)e Capit!l 2$ildin- in Or!.$ieta, 0isa%is Occidental, *)erein t)e plaintiff *as t)e )i-)est +idder and as s$c) a Certificate !f &ale *as e?ec$ted +, 0R. VICENTE D. ROA *)! *as t)en t)e E?-Offici! r!vincial &)eriff in fav!r !f LUCIA TAN t)e )erein plaintiff. D$e t! t)e fail$re !f defendant Arad!r Valde)$e"a t! redee% t)e said land *it)in t)e peri!d !f !ne ,ear as +ein- pr!vided +, la*, 0R. VICENTE D. ROA *)! *as t)en t)e E?-Offici! r!vincial &)eriff e?ec$ted an A2&OLUTE DEED O/ &ALE in fav!r !f t)e plaintiff LUCIA TAN. A c!p, !f t)e NOTICE O/ &HERI//& &ALE is )ere+, %ar4ed as @Anne? A@, t)e CERTI/ICATE O/ &ALE is %ar4ed as @Anne? 2@ and t)e A2&OLUTE DEED O/ &ALE is )ere+, %ar4ed as Anne? C and all !f *)ic) are %ade as inte-ral parts !f t)is stip$lati!n !f facts. 8. T)at t)e part,-plaintiff is t)e sa%e plaintiff in Civil Case N!. 5AA5; t)at t)e parties defendants Arad!r, Redic$l! and acita, all Valde)$e"a *ere t)e sa%e parties-defendants in t)e sa%e said Civil Case N!. 5AA5; t)e c!%plaint in Civil Case N!. 5AA5 t! +e %ar4ed as E?)i+it :; t)e ans*er as E?)i+it 5 and t)e !rder dated 0a, 55, :>=< as E?)i+it <, and said e?)i+its are %ade inte-ral part !f t)is stip$lati!n. 6. T)at defendants ARADOR VALDEHUEZA and REDICULO VALDEHUEZA )ave e?ec$ted

t*! d!c$%ents !f DEED O/ ACTO DE RETRO &ALE in fav!r !f t)e plaintiff )erein, LUCIA TAN !f t*! p!rti!ns !f a parcel !f land *)ic) is descri+ed in t)e sec!nd ca$se !f acti!n *it) t)e t!tal a%!$nt !f ONE THOU&AND /IVE HUNDRED E&O& 1 :,6AA.AA3, )ilippine C$rrenc,, c!pies !f said d!c$%ents are %ar4ed as @Anne? D@ and Anne? E@, respectivel, and %ade as inte-ral parts !f t)is stip$lati!n !f facts. =. T)at fr!% t)e e?ec$ti!n !f t)e Deed !f &ale *it) ri-)t t! rep$rc)ase %enti!ned in t)e sec!nd ca$se !f acti!n, defendants Arad!r Valde)$e"a and Redic$l! Valde)$e"a re%ained in t)e p!ssessi!n !f t)e land; t)at land ta?es t! t)e said land *ere paid +, t)e sa%e said defendants. Civil case 5AA5 referred t! in stip$lati!n !f fact n!. 8 *as a c!%plaint f!r in9$ncti!n filed +, Tan !n '$l, 58, :>67 a-ainst t)e Valde)$e"as, t! en9!in t)e% Bfr!% enterin- t)e a+!ve-descri+ed parcel !f land and -at)erin- t)e n$ts t)erein ....B T)is c!%plaint and t)e c!$nterclai% *ere s$+se.$entl, dis%issed f!r fail$re !f t)e parties Bt! see4 f!r t)e i%%ediate trial t)ere!f, t)$s evincin- lac4 !f interest !n t)eir part t! pr!ceed *it) t)e case. : T)e Deed !f act! de Retr! referred t! in stip$lati!n !f fact n!. 6 as BAnne? DB 1dated A$-$st 6, :>663 *as n!t re-istered in t)e Re-istr, !f Deeds, *)ile t)e Deed !f act! de Retr! referred t! as BAnne? EB 1dated 0arc) :6, :>663 *as re-istered. On t)e +asis !f t)e stip$lati!n !f facts and t)e anne?es, t)e trial c!$rt rendered 9$d-%ent, as f!ll!*s( CHERE/ORE, 9$d-%ent is )ere+, rendered in fav!r !f t)e plaintiff( :. Declarin- L$cia Tan t)e a+s!l$te !*ner !f t)e pr!pert, descri+ed in t)e first ca$se !f acti!n !f t)e a%ended c!%plaint; and !rderin- t)e )erein defendants n!t t! encr!ac) and %!lest )er in t)e e?ercise !f )er pr!prietar, ri-)ts; and, fr!% *)ic) pr!pert, t)e, %$st +e disp!ssessed; 5. Orderin- t)e defendants, Arad!r Valde)$e"a and Redic$l! Valde)$e"a 9!intl, and severall, t! pa, t! t)e plaintiff, L$cia Tan, !n Anne? @E@ t)e a%!$nt !f :,5AA, *it) le-al interest !f =D as !f A$-$st :6, :>==, *it)in >A da,s t! +e dep!sited *it) t)e Office !f t)e C!$rt *it)in >A da,s fr!% t)e date !f service !f t)is decisi!n, and t)at in defa$lt !f s$c) pa,%ent t)e pr!pert, s)all +e s!ld in acc!rdance *it) t)e R$les !f C!$rt f!r t)e release !f t)e %!rt-a-e de+t, pl$s c!sts; <. And as re-ards t)e land c!vered +, deed !f pact! de retr! anne? @D@, t)e )erein defendants Arad!r Valde)$e"a and Redic$l! Valde)$e"a are )ere+, !rdered t! pa, t)e plaintiff t)e a%!$nt !f <AA *it) le-al interest !f =D fr!% A$-$st :6, :>==, t)e said land servin- as -$arant, !f t)e said a%!$nt !f pa,%ent; 8. &entencin- t)e defendants Arad!r Valde)$e"a and Redic$l! Valde)$e"a t! pa, 9!intl, and severall, t! t)e )erein plaintiff L$cia Tan t)e a%!$nt !f :,AAA.AA as att!rne,@s fees; and . 6. T! pa, t)e c!sts !f t)e pr!ceedin-s.

T)e Valde)$e"as appealed, assi-nin- t)e f!ll!*in- err!rs( T)at t)e l!*er c!$rt erred in failin- t! ad9$d-e !n t)e first ca$se !f acti!n t)at t)ere e?ists res 9$dicata; and

T)at t)e l!*er c!$rt erred in %a4in- a findin- !n t)e sec!nd ca$se !f acti!n t)at t)e transacti!ns +et*een t)e parties *ere si%ple l!an, instead, it s)!$ld +e declared as e.$ita+le %!rt-a-e. Ce affir% in part and %!dif, in part. :. Rel,in- !n &ecti!n < !f R$le :7 !f t)e R$les !f C!$rt *)ic) pertinentl, pr!vides t)at a dis%issal f!r fail$re t! pr!sec$te Bs)all )ave t)e effect !f an ad9$dicati!n $p!n t)e %erits,B t)e Valde)$e"as s$+%it t)at t)e dis%issal !f civil case 5AA5 !perated, $p!n t)e principle !f res 9$dicata, as a +ar t! t)e first ca$se !f acti!n in civil case 5678. Ce r$le t)at t)is c!ntenti!n is $ntena+le as t)e ca$ses !f acti!n in t)e t*! cases are n!t identical. Case 5AA5 *as f!r in9$ncti!n a-ainst t)e entr, int! and t)e -at)erin- !f n$ts fr!% t)e land, *)ile case 5678 see4s t! Bre%!ve an, d!$+t !r cl!$d !f t)e plaintiff@s !*ners)ip ...B 1A%ended c!%plaint, Rec. !n App., p. 573, *it) a pra,er f!r declarati!n !f !*ners)ip and rec!ver, !f p!ssessi!n. Appl,in- t)e test !f a+sence !f inc!nsistenc, +et*een pri!r and s$+se.$ent 9$d-%ents, 5 *e )!ld t)at t)e fail$re !f Tan, in case 5AA5, t! sec$re an in9$ncti!n a-ainst t)e Valde)$e"as t! prevent t)e% fr!% enterin- t)e land and -at)erin- n$ts is n!t inc!nsistent *it) )er +ein- ad9$d-ed, in case 5678, as !*ner !f t)e land *it) ri-)t t! rec!ver p!ssessi!n t)ere!f. Case 5AA5 inv!lved !nl, t)e p!ssessi!n !f t)e land and t)e fr$its t)ere!f, *)ile case 5678 inv!lves !*ners)ip !f t)e land, *it) p!ssessi!n as a %ere attri+$te !f !*ners)ip. T)e 9$d-%ent in t)e first case c!$ld n!t and did n!t enc!%pass t)e 9$d-%ent in t)e sec!nd, alt)!$-) t)e sec!nd 9$d-%ent *!$ld enc!%pass t)e first. 0!re!ver, t)e ne* Civil C!de pr!vides t)at s$it!rs in acti!ns t! .$iet title Bneed n!t +e in p!ssessi!n !f said pr!pert,. < 5. T)e trial c!$rt treated t)e re-istered deed !f pact! de retr! as an e.$ita+le %!rt-a-e +$t c!nsidered t)e $nre-istered deed !f pact! de retr! Bas a %ere case !f si%ple l!an, sec$red +, t)e pr!pert, t)$s s!ld $nder pact! de retr!,B !n t)e -r!$nd t)at n! s$it lies t! f!recl!se an $nre-istered %!rt-a-e. It *!$ld appear t)at t)e trial 9$d-e )ad n!t $pdated )i%self !n la* and 9$rispr$dence; )e cited, in s$pp!rt !f )is r$lin-, article :E76 !f t)e !ld Civil C!de and decisi!ns !f t)is C!$rt circa :>:A and :>:5. Under article :E76 !f t)e Civil C!de !f :EE>, re-istrati!n *as a necessar, re.$isite f!r t)e validit, !f a %!rt-a-e even as +et*een t)e parties, +$t $nder article 5:56 !f t)e ne* Civil C!de 1in effect since A$-$st <A,:>6A3, t)is is n! l!n-er s!. 8 If t)e instr$%ent is n!t rec!rded, t)e %!rt-a-e is n!net)eless +indin- +et*een t)e parties. 1Article 5:56, 5nd sentence3. T)e Valde)$e"as )avin- re%ained in p!ssessi!n !f t)e land and t)e realt, ta?es )avin- +een paid +, t)e%, t)e c!ntracts *)ic) p$rp!rted t! +e pact! de retr! transacti!ns are pres$%ed t! +e e.$ita+le %!rt-a-es, 6 *)et)er re-istered !r n!t, t)ere +ein- n! t)ird parties inv!lved. <. T)e Valde)$e"as clai% t)at t)eir ans*er t! t)e c!%plaint !f t)e plaintiff affir%ed t)at t)e, re%ained in p!ssessi!n !f t)e land and -ave t)e pr!ceeds !f t)e )arvest t! t)e plaintiff; it is t)$s ar-$ed t)at t)e, *!$ld s$ffer d!$+le pre9$dice if t)e, are t! pa, le-al interest !n t)e a%!$nts stated in t)e pact! de retr! c!ntracts, as t)e l!*er c!$rt )as directed, and t)at t)eref!re t)e c!$rt s)!$ld )ave !rdered evidence t! +e add$ced !n t)e )arvest. T)e rec!rd d!es n!t s$pp!rt t)is clai%. N!*)ere in t)e !ri-inal and t)e a%ended c!%plaints is an alle-ati!n !f deliver, t! t)e plaintiff !f t)e )arvest fr!% t)e land inv!lved in t)e sec!nd ca$se !f

acti!n. Hence, t)e defendants@ ans*er )ad n!ne t! affir%. In s$+%ittin- t)eir stip$lati!n !f facts, t)e parties pra,ed Bf!r its appr!val and %a,+e %ade t)e +asis !f t)e decisi!n !f t)is H!n!ra+le C!$rt. B 1e%p)asis s$pplied3 T)is, t)e c!$rt did. It cann!t t)eref!re +e fa$lted f!r n!t receivin- evidence !n *)! pr!fited fr!% t)e )arvest. 8. T)e i%p!siti!n !f le-al interest !n t)e a%!$nts s$+9ect !f t)e e.$ita+le %!rt-a-es, :,5AA and <AA, respectivel,, is *it)!$t le-al +asis, f!r, BN! interest s)all +e d$e $nless it )as +een e?pressl, stip$lated in *ritin-.B 1Article :>6=, ne* Civil C!de3 /$rt)er%!re, t)e plaintiff did n!t pra, f!r s$c) interest; )er t)esis *as a c!ns!lidati!n !f !*ners)ip, *)ic) *as pr!perl, re9ected, t)e c!ntracts +eine.$ita+le %!rt-a-es. Cit) t)e definitive res!l$ti!n !f t)e ri-)ts !f t)e parties as disc$ssed a+!ve, *e find it needless t! pass $p!n t)e plaintiffs petiti!n f!r receivers)ip. &)!$ld t)e circ$%stances s! *arrant, s)e %a, address t)e said petiti!n t! t)e c!$rt a .$!. ACCORDIN#LF, t)e 9$d-%ent a .$! is )ere+, %!dified, as f!ll!*s( 1a3 t)e a%!$nts !f :,5AA and <AA %enti!ned in Anne?es E and D s)all +ear interest at si? percent per ann$% fr!% t)e finalit, !f t)is decisi!n; and 1+3 t)e parcel !f land c!vered +, Anne? D s)all +e treated in t)e sa%e %anner as t)at c!vered +, Anne? E, s)!$ld t)e defendants fail t! pa, t! t)e plaintiff t)e s$% !f <AA *it)in >A da,s fr!% t)e finalit, !f t)is decisi!n. In all !t)er respects t)e 9$d-%ent is affir%ed. N! c!sts.